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1985 Supreme(Pat) 185

PATNA HIGH COURT
SANDHAWALI, C. J. & B. P. JHA, JJ.
Harendra Narain Banker - Petr.
VS.
The State of Bihar & ors - Reap.
C.W.J.C. No.1998/83
Decided On : 23.5.1985

Advocates Appeared:
For the Petitoner : Messrs Madan Mohan Prasad and Madhu Sudan Kumar
For the Respondents: Messrs Kamla Pati Singh, Government Pleader V, and Ram Kriahna Singh, Junior Counsel

Headnote:Constitution of India Art. 12 and 226 - BISCOMAUN is not an instrumentality of the State and hence is not a State within the meaning of Art. 12 of the Constitution - It does not enjoy any monopoly status, which is State conferred or State protected - state has no financial control over its affairs - Biscomaun is sovereign and Its Management vest in the Managing Committee-State has no deep or pervasive control over it. - Its functions are not linked or related to sovereign Governmental functions-it is Society registered under the Co-operative Societies Act, No writ lies against it.

       Relied on AIR 1981 S.C. 487;AIR 1980 SC. 840, 1981 S C.212, 1984 LIC 301, 1984 L.I.C. 15 (S. C.), 1984 (2) L. L. J, 186, 1981 L. I. C. 1550, 1983 L.I.C. 1782, 1984 L. I, C. 131, 1984, L I C. 875, 1984 L. I. C 1794 (F. B.) 1984 L.I.C 1124 (F. B.) & 1982 BBCJ 460 distinguished (Para 6, 7, 11, 15, 17, 18, 20, 21, 22, 25, 27, 28, & 40)

Judgment

S.S. Sandhawalia, C.J.,

Whether the Bihar State Co-operative Marketing Union Ltd., a society registered under the Bihar and Orissa Co operative Societies Act. 1935 is, in essence, an instrumentality or agency of the State and, consequently, amenable to the writ jurisdiction is the meaningful threshold question in this writ petition.

2. The facts deserve notice only in so far they are relevant to the pristine issue aforesaid. The Bihar State Co operative Marketing Union, Ltd. Patna (hereinafter to be referred to as the 'Biscomaun') is an apex society which, on the petitioner's own showing is duly registered under the Bihar and Orissa Co operative Societies Act, (hereinafter to be referred to as the 'Act'). Harendrn Narain Banker, petitioner, entered the service of Biscomaun in the year 1965 and was promoted to the post of the Accountant in the year 1970. A first information report pertaining to defalcation to the tune of Rs.3.5 lacs or more was lodged on the 30ih of March, 1977 sted and admittedly the criminal case is proceeding to the court of a Judicial Magistrate. Patna. Departmental proceedings were initiated against the petitioner in which the Deputy Managing Director was appointed as the Inquiry Officer who rendered a report holding the petitioner guilty of various charger on the basis of which he was dismissed. Aggrieved thereby, the petitioner preferred an appeal to the Registrar of Co-operative Societies, Bihar, which according to him, is being inordinately delayed. Herein the petitioner primarily seeks a writ in the nature of certiorari for quashing letter no. C 1546 dated the 20th of October, 1979 dismissing him from the post of accountant, and it is common ground that the primary relief sought was against Biscomanun. The threshold question that consequently arises is whether the present writ petition is maintainable at all against the co-operative Biscomaun.

3. It would appear that originally the writ petitioner was perhaps not alive to this aspect of the case and no relevant averments with regard thereto were made. However, the issue having been pointedly raised during the motion hearing, two supplementary affidavits have been filed on behalf of the petitioner to sustain his claim that the respondent Biacomaun is an instrumentality and agency of the State and, therefore, amenable to the writ jurisdiction under Article 226. It is averred on behalf of the petitioner that all the employees of Biscomaun are governed by the provisions contained in the Bihar Service Code and their pay scale and emoluments are at par with those or Government servants. Further the replacement scale of salary as contained in Government Resolution no.3/P, R.C.-3/81/F.10770 date 30th of December, 1982, which was issued on the recommendation of the 4th Pay Revision Committee has also been made applicable to the employees of Biscomaun. It is averred that the share of the State Government in Biscomaun is 99 per cent and barring the shares held by co-operative societies and others to the tune of Rs.2,87,502.00, the remaining share capital is held by the State. A vague averment has been made that the Biscomaun is run and managed by 35 Government servants and amongst these one is an I.A.S. officer and 4 persons are in the rank of Additional District Magistrates,

4. In the counter affidavit filed by the Law Officer of the respondent Biscomaun, the stand of the writ petitioner in this context is stoutly controverted. It is pointed out that the respondent is a society registered under the Act, and consequently conducts its business in accordance with the provisions of the said Act, and the Bihar Co-operative Societies Rules, 1959 (hereinafter called the Rules) framed thereunder along with its registered Bye-laws. It is denied that the said society is in any way an instrumentality or agency of the State and in terms it is averred that the entire share capital of the respondent is not held by the State Government but also by other member co-operativ



































































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